BOM COSTING IS THE STRATEGIC ACTIVITY OF ALL Electronic Manufacturing Services Companies

IT’S NO SECRET: BEING THE FIRST ONE TO DELIVER A QUOTE TO A CUSTOMER IS A KEY FACTOR OF SUCCESS.

EMS companies state it raises their chances of winning a deal of up to 80%. The targeted lead time for submitting a quotation to the customer used to be about two weeks. The most difficult part is not to reach this goal once, but to ensure continuous performance.

Quote lead times expected by the customer are always shorter. More and more often, they expect it to be less than 1 week.

DIFFERENT CUSTOMER’S EXPECTATIONS

For a prototype, the lead time to provide a quotation will be considered crucial by the customer. For mass production, it is, of course, the price of the quotation will be a key point. Quotation request can be simple BOM costing evaluation. The quotation process mostly affects existing customers at the early stage of their product design, when R&D teams need to evaluate the cost of different technical solutions. Regarding sourcing situation, a cost-effective quotation will be the major criterion during the customer selection process.

ORGANIZATION

BOM costing can be done by the project sourcer, whom will take charge of quoting all the BOM materials. A company can also have a dedicated sourcing team, in which the different materials are divided according to family part. In the first case, controlling the lead time is easier, but it requires an efficient management. In the second case, the workload can be spread but it asks for additional work, for coordination and data consolidation.

EMS

BUYMANAGER SUPPORT ALL THOSE NEEDS and REQUIREMENTS

CUSTOMER BOM COSTING FOR EMS. FASTER. WITH LESS EFFORTS.

BOM COSTING: UNGRATEFUL WORK

People in charge of BOM costing spends a lot of energy to provide the quotation in the best lead time possible. Sending RFQs to suppliers, reviving them, collecting a huge quantity of data, synthesize all pieces of information… Quite often, the feedback consists in: “The cost is too high!”, “We are late” or “We need to quote another quantity”. If sourcers remain the most appropriate resources to take care of BOM costing, they prefer to work on sourcing, analysis and negotiation activities; instead of time-consuming data collection and manipulation activities. The management needs to find a compromise, but always with the same objective: give an answer to their customers within the best lead time.

EMS

WHY APPLYNG A DIFFERENTIATED APPROACH?

Throughout the development process, it is a necessity to evaluate product costs manufacturing. EMS companies are faced with two problems: 1)working on BOM costing within very short lead time to meet customers’ expectations. 2) Setting up a purchasing strategy to meet company’s performance and profit requirements. In addition, short manufacturing lead time expectations ask for an accurate control of inventory and procurement delay. To succeed, it’s essential to apply a differentiated approach, which consists of using the appropriate tool for each specific cases.

To succeed, it’s necessary to apply a differentiated approach, which consists in using the appropriate tool for each specific case.

COMPLEX CONCERNS ALL ALONG THE PROCESS

BOM COSTING PROCESS CAN BE SUMMARIZED INTO 5 STEPS
EMS

THERE ARE SEVERAL CONCERNS ALL ALONG THE PROCESS AMONG WHICH: